Tag Archives: smart

Why smart people do stupid things with money?

Smart people

It’s a pretty good question, is not it? How do intelligent people manage to do things with money and after a while become totally disappointed with their “successes”?

I suggest you think a little bit!

And here I do not mean people without financial education or any other kind of education.

Let’s think of intelligent people who have completed a faculty or a master and who have obtained a job because of their competencies or who have developed a start-up that has become a “small profitable money machine”. How do they become totally disappointed with their own financial situations, even though they have earned a lot of money over the years?

Here are three of the most common reasons:

  • They have a disastrous financial behavior. Although there are people who have extraordinary professional, social or family behavior when it comes to financial behavior, they completely ignore it!

          They are implusive consumers, meaning “perfect” for traders. Buy anything at any price. If they like something, they put in a basket without considering how much money they have available until the next salary. “I even withdraw money from my credit card if I do not have any money left in my salary account”. You’ve heard of such people, right?

         The first step in changing financial behavior is definitely analyzing your own behavior. If it’s not one you can be proud of, you can change it. Instead, if you go like a ostrich – just put your head in the ground and deny your own financial situation – it takes only a short while until the frustrations and shortcomings will arise.

  • They omit the financial planning activity. They do not have financial goals, they have no clearly defined plans to follow, and this is why they do not take into account the financial planning activity. Surprisingly, all people know that without a plan whatever it is financial or any other type, the chances of success tend towards zero.
    To increase your chances of succeeding in what you propose, take a pen and a sheet, write down your short, medium, and long-term financial goals, make plans for action, and set up tight financial targets.

          If you want a house, set the amount of money you need, the detailed plan to get that amount, the intermediate targets delimited by clear terms and get to work. Without action, the results are always zero!

  • They do not have information, skills or financial skills. The result of not very profitable investments is often the lack of understanding of financial products and services and business investment in areas that they do not know.

          I’m sure you’ve heard questions like “I have 10,000 euros and I do not know what to invest in.” Or “What are the most profitable businesses?” Often, those who ask for such questions are people who lose money because of their lack of skills and entrepreneurial experience.

         Lack of understanding of financial products and services such as savings accounts, deposits, investment funds, shares or the Forex market can also cause a small amount of trouble if you do not understand how they work.

       Developing a “healthy” thinking, how the most important financial products and services work, and developing entrepreneurial skills can help you increase your personal income.

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5 helpful tips on how to get rid of debt

There are no more stressful things than debts, worries about monthly spending and insistence of creditors. Did you think maybe you just do not know how to get rid of these debts? Well, you’re not the only one! Fortunately, there are experts who can show you some practical ways that can help you pay your debts in time.

First, there are periods when debt is inevitable. For example, you can buy a house, a car, pay for medical fees or school for your child. If you do not have the money to make a full purchase, then taking a loan can often be a move even indicated.

However, there are situations where you borrow more money than you can afford and you are unable to repay them. This is the time when problems arise. However, it is important not to panic. You can always find solutions to help you get rid of debt.

Here are some practical tips that will help you better manage your debt:

1. Perform a financial reassessment

It begins by always looking at both the mistakes and the financial successes of the previous year. What can you learn from this? What did you do well? What could you do better? Draw up a budget for the next year, using what you learned from the previous year and use it to guide your spending in the future.

2. Plan and buy smartly

Make a list of the items you need to buy before shopping. Knowing just in advance what you need and limiting only to purchasing these items will allow you to fit into the budget. Try to establish with your family and friends and buy together what you need in larger quantities. This can help save you in the long run.

If, for example, you tend to exaggerate with Christmas gifts, and this is important for you, prepare yourself early. Consider budgeting and buying gifts throughout the year to avoid last-minute spending and debt.

3. Take a part-time job

One of the best ways to get rid of debt is choosing a part-time job. The extra money you will earn is an excellent way to pay your bills. Normally, if the time permits you and your current job is not very demanding.

4. Sell what is no longer useful

Another recommended way to get some extra money to pay your debts is by selling items that you no longer need or you no longer use.

5. Consider the advice of a specialist

If you realize that you simply can not manage your own budget and personal expenses, then you can call on a financial specialist. It does not have to be a professional you need to pay. Instead, he can be a friend with money management experience that can provide you with financial education, guidance and counseling.

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Salary too small? Here’s how you can handle it more easily

Almost all of us have been through a period of financial instability when you have a too small salary and you can not pay your bills anymore. However, there are people who can handle such situations. An impressive number of people have a small salary and they live from one month to the next with just that money. If you want to know what you should do when you have too little money, read the tips below:

Follow a monthly budget

Try to watchevery month the way you spend your money and sources of income. Once you have an idea, manage your expenses carefully and exclude those that are unnecessary. Every month analyze how much money you have and what are the possible costs that may occur. Prioritize your bills and debts.

Be prepared for unprepared urgings

We know that when you have too little wages, you do not want financial emergencies, but such things happen to us all. Besides the monthly budget, from the little you are trying to put aside the month after the month, you must save for the financial urgencyes. Saved money will help you get over heavy times without spending too much of your personal budget.

Try to reduce your monthly expenses

You may not have realized, but the services you call monthly may be cheaper than you have now. Change your TV and even electricity suppliers if you can. In the long run these changes will feel in your pocket.

Borrow smartly

If you need money to pay an emergency bill take an online loan. However, try to borrow only in urgent situations, when you have to pay bills that do not support postponement, such as when you have ruined your household appliances, or at other similar moments. Making a credit to buy a perfume or to make a gift to a person is not necessarily the best idea. Make sure the reason for the loan is good and real and be objective when making this decision.

Find long-term solutions

It is very nice to know that you have a big amount of money when your monthly salary is low. Even if the temptation is great, do not resort to methods that will leave you without money in the coming period. For example, do not pawn your personal objects that you are very sentimental off. You will want them to be returned, but you may not have enough money to take repossession of them. Rather, look for another part-time job or do something that you are good at, but well payed.

Which of the above ideas seems the most appropriate to you when you have too little a salary?

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Rent or own? The advantages and disadvantages of each case

“I’m tired of paying money on rent!”
Have you heard that phrase?
If not … maybe on this one:
“Money on rent is money thrown out the window.”
There are many who claim that being the owner of the house and not just a tenant is the best option.
But there are plenty of people who are on the other side of the barricade and prefer to pay the rent monthly instead of getting tired for paying for decades to the bank.
Have you ever heard your friends say, “I’m not crazy to pay for 30 years to the bank! Who knows what can happen in the mean time? It’s just too long!!!”

The question is:

Who is right? How is it best: to own or pay rent?

We will try to find the answer to this question in this article.
What I want to clarify, however, from the very beginning is this: the information I will provide further, will not make you permanently pass on either side of the barricade and to be pro or against rent for the rest of your life .
That’s because, in our decisions we have to take alongside our lives, and there are, besides our preferences, a number of other factors. Some of these factors are static.
There are also dynamic factors. And these dynamic factors makes that what seems to be the perfect choice now, over the next 5 years will no longer be a good idea.
That is why, I’m proposing to address both the owner and tenant in terms of the advantages and disadvantages offered by each of them.
So, anytime, during your life, reading this article, you can review all these advantages and disadvantages according to your situation at that time, and as a result, you will be able to make the best possible decision.

Why buy a house or apartment?

You buy a house once in your life

A house is more than a roof over your head.
The feelings you associate with your home can be even stronger if they mark a new beginning.
For example, if you just married and together with your half bought a house, you think at it as your home, the home that, over the years, will shelter countless dreams, hopes, but it will also witness many events in live through which every man passes, at some point in his life.
That is why a word from the old says: “In a man’s life you must make a child, build a house and plant a tree.”
Whether you agree or disagree with this phrase, I’m sure you understand the point of having a home. That’s because this house is the foundation for everything that’s going to happen.

It provides stability

You know that you have where to come back every night; a place where you can put your head down and rest after a full day.
You know that you are not at the owner’s mercy that can ask you anytime to leave the house within … or change the terms and conditions whenever he wants or … even worse, maybe sell the property if he is offered a tempting sum of money.
In this situation, you are the one who decides.
And as most of the owners do, if you’ve chosen to pay a 25-30-year credit to the bank, you know that with every single payment you make, every passing month, you’re a step closer to owning 100% of of your house.

There are no surprises

Even if small incidents can occur from time to time (for example: the neighbor above has flooded you and you have to paint again), that does not mean that this will happen every month. Normally, the expenses for your home remain the same.
This will help you to keep track of your expenses, forecasts and financial goals.

Diversification of income sources

Although investing in buying a house to live in, in the long run, does not necessarily prove to be a profitable one, the fact that you own a house can help you a lot in getting new loans from the bank if, from the situation your account, resides that you are a good payer.
If instead, you’re thinking about buying a house, in order to rent it is a good idea. Real estate is nothing but another source from which you can receive passive income month by month from the people you rent it.

Why rent a house or apartment?

You do not need the bank’s approval

There are people who, for various reasons (theirs or the employer) can not go to the bank to opt for a credit for buying a home.
For them, this second option works best. That’s because the system is simple, fast and works in 3 steps: Seen. Pleased. Rent. No more months of running and dozens of approvals and of course … without the burden of thinking that they will have to pay 25-30 years to the bank, no matter what.

Flexibility

And when I say flexibility, I do not necessarily mean the flexibility of the location but also the budget.
Think about it this way: maybe you want to live in the capital city today because, why not … here are the most interesting events?
Later, the agglomeration and madness of the capital don’t feel no longer so good, and you decide to move to a smaller town.
To the retirement age, you may want to live out of town for a simple and quiet life in the country to be closer to nature.
All of these changes can be done quite quickly, because you do not have a real estate already bought to keep you moving from where you want, when you want.
This is perfect for you if your job or business forces you to travel a lot and as a result you have to move often.
We also talk about cost flexibility. If you want to stay in a central area you will pay a price. If, then, for various reasons, you want to pay less, you can rent a property on the outskirts of the city.
Your family is growing up and the studio you lived in until yesterday, has now become a snap? No problem. You can rent a house or apartment with 2 or 3 rooms at any time.
As you see, as a tenant, you have a very high flexibility, both in terms of location and in terms of the amount paid for the rent and the size of the rented dwelling that can be changed, as said above, consistent with the changes that occurs in your family.

Avoid extra expenses

Do not imagine that if he owns the house, the owner of the house has escaped other expenses. Not at all. There are a lot of expences that gather in time and need to be resolved, so you can still live in good conditions in that house and continue to pay rent.
That’s not to mention the taxes that the landlord has to pay annually. You, as a tenant, do not have to take out any money from your pocket for that.
As a tenant, you avoid the costs of removing the furniture, redecorating the new home, etc.

Access to liquidity

A house can not be converted into cash from one day to the next. From this perspective, it is illogical to put your lifetime savings in one thing: in a building.
That’s because it cannot be turned easy into liquidity and also, depending on the evolution of the real estate market at that moment, no one can guarantee you that the real estate you own will be sold over the years at a price above acquisition.

Instead of a conclusion

Now, at the end of the article, I’d like to know your opinion. From your point of view, if you have the choice now: to rent or to buy a house, what would you choose and why?

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6 tricks to negotiate a smaller rent and be a winner

Are you looking to rent an apartment, a studio or a house and want to get a monthly rent as small as possible? Then the tips below will definitely help you when you negotiate with the owner of that building.

1. Do the research. Study the market.

You need to know at what prices are rented other similar buildings in the area.
And when I say: to know at what prices are rented, I do not refer to the price displayed on real estate sites, but the actual amount the tenant pays after negotiating with the landlord.
This will take you some time. I know that. However, in order to be able to negotiate effectively, you need to have enough valid arguments at hand in negotiating with the owner. Of the two of you, the one who comes up with the strongest arguments will win.
If you do not like it or do not have the time to sit and study the market, you can call a real estate agency in the area, to come a real estate agent with you, inspect the apartment you want and help you in the negotiation process.
An experienced real estate agent has much more knowledge than you could get from watching a few housing deals. However, consider that, in this case, you will also have to pay a commission to the real estate agency. But do not worry about it. Think of it this way: if eventually all the parties involved win, that’s all that matters.

2. Count on honesty

Mutual trust is an important factor in the long run if you reach an agreement with the owner and sign the rental agreement.
That’s why, when the negotiation process takes place, do not fall in the temptation to use false informations, in order to make the owner take decisions that favors you. If he feels like you are trying to force his hand, he will withdraw from the bargain and look for another client, and you will have nothing to gain from the whole process.
The reverse is also valid. If in the bargaining process you feel the owner is trying to bloom things so they seem much better than they are in reality, it’s time for you not to get tired anymore. Signing a contract with a liar owner will only bring long-term additional headaches and is not worth it.

3. Treat the man in front of you with respect

Try to keep a constant attitude throughout the negotiation process. If you annoy or offend the owner, or do cynical affirmations, you will not look smarter and will not be able to turn back the situation in your favor.
Look at the situation also from the owner’s point of view. Respect his opinion, because you want, in turn, for him to respect your point of view.

4. Go on the win-win idea

Think that if you come to an agreement in the long run, both you and the owner will win: you will pay a lower rent and he will not have to lose time constantly running after new tenants .
So when negotiating, do not try to win all your battles. If the owner gives up something, when you talk about a particular aspect, give up on yourself when you negotiate another aspect of renting the building.
If you can give more rents as an advance from the beginning, it can be a great asset for you. So, in the eyes of the owner, you are perceived as a trustworthy tenant, without any financial problems, which will not make for him every month’s trouble when it comes to paying rent.
At the same time, the bigger amount you give him from the very beginning can make him look so much to be willing to offer you a lower rent than he would have initially wanted at the beginning of the negotiation.
You can also, in return for a smaller rent, to renovate his apartment or fix some of the faulty things in the apartment.
Also, if you are good at something and the owner needs that service, you can try a bargain: for the amount that reduces the monthly rent, you will provide services periodically, in the field you are skilled in.

5. Whatever happens, stay calm

When emotions are involved, and each one holds at their point of view and are not willing to change it, then negotiation becomes almost impossible, and a conflict is reached rather than an amiable understanding.
The higher the tension between the two parties, the more likely the two parties to sign a lease contract decreases. That’s why, although I know it’s hard, in a bargain you have to look at everything “at cold”.
Detach yourself from emotions and try to look at the whole situation from the outside, from both angles – the owner and the tenant.
This will give you a clearer perspective on the whole process, and at the same time it will be easier for you to keep calm, compared to the situation where you see this whole transaction as a matter of life and death.
Also, even if you are desperate to rent that home, do not show you’re desperate desire even if:
You know that tomorrow you do not have where to stay and you will sleep under the free sky or
– 
You think you cant’t find a home like this anymore even in your most beautiful dreams.
The more you are desperate to become a tenant in that building, the more the owner will “smell” you more easily and will get harder in the negotiation process.
As I said earlier … leave your feelings home.

6. Do not let yourself intimidated

Do not rush to make the decision to rent the house at the price proposed by the owner, depending on events such as:
– as you visit the apartment, there are other potential customers who have also found themselves to watch it at the same time as you. Most likely, it’s a “production”, meant for you to rush to make a decision.
– while the landlord shows you the home, his phone rings and the alleged clients at the other end of the wire makes him to come back to you and say, “So what is it … you’ll take the apartment or I will talk to the customer on the phone to come and see it?”

In conclusion: when you start the negotiation process for the monthly rent in that building, remember the advices above and you will be much more satisfied with the outcome of the negotiation.

 

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7 mental mistakes that prevent you from getting rich

The first step to gaining wealth is to get rid of preconceived ideas and bad mental habits that pull you down.

Which are these?

1. You’re just focusing on the near future

Do you know what people’s greatest regrets? The fact that they did not start saving earlier. Saving and investing money for 30 years is often overlooked in favor of spending money for an immediate need. Whether we are talking about a phone, a car or a house, it will always be something that seems more important than saving.
We place too much emphasis on what happens in the next few days and weeks and little emphasis on what will happen over a year … or, not to say, over 10 years.

2. You hate moments when you lose money

Studies show that the so-called ‘pain’ caused by losing money is more than twice as much as the pleasure we feel when we earn money.
This mental blockage often makes you make the wrong investment decisions and stop taking risks that would be worthwhile.
For example, a bet on throwing the coint, which would bring a $ 00 loss if the guesse is wrong.  Although a $100 gain (chances 50-50) would make this bet a fair one, most people would only accept the bet if the win would be $200 or more.

3. You are overconfident

Often trust is the key to success, but there is a limit. The point is that not all of us can be better than the average.
When it comes to investing money, too much self-confidence makes people take risks that they later regret; makes us believe that we can “beat” the market and that we can invest large amounts of money in one thing, without diversifying it.

4. Try to rationalize the wrong decisions

Throughout your life you will make a series of financial mistakes. It’s a sure thing. What matters is how you will come back after these.
Instead of recognizing and correcting these mistakes, we will often try to invent reasons that make our mistakes decisions that seem rational.
Sometimes, the notion that “we’ve made a bad financial decision” might hit the idea of “I’m good at managing the money.” Instead of pretending it is not a big problem, it would be best to correct this and move on.

5. You get financial decisions based on emotions

While managing our money, we need to be aware that our goal is strictly a practical one – making money. In reality, however, we often make decisions for emotional reasons, and so we get into the situation where financial goals are affected by other things from our everyday life.
The conclusion? If you want to get rich, you have to make objective financial decisions, or at least avoid doing something about your money when you know that you are not in a very good emotional state.

6. You rely on what seems to be good

We often base our decisions on the information that comes out more clearly in our minds. For example, unlike a car crash, the crash of a plane is always a news story, so we are automatically more fearful of flying, even though they produce much less deaths than land-based accidents.
The same must be done in the case of our finances. We often read news about business people who have been enriched by successful investments, or people who have won the lottery. For this reason, it seems to us that winning the lottery or that succeeding to become successful business people is much easier than in reality.
Build your financial decisions on statistics and research, not on news or spectacular information.

7. You lack self-control

With so many opportunities to spend money, saving seems to be the last thing you want to do. However, it is necessary to start saving and investing as early as possible if you want to have at least a chance of enriching yourself.
A little financial discipline will help you a lot in the long run, and after all, you are the only one responsible for your own personal finances.

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Little money or … poorly managed? 6 mistakes (and solutions)

How many times did you say to yourself : “If I had more money, then everything would be fine …”?
Well, if you were to have a brief analysis in the last year or the last 2-3 years, you probably have had “more money” and your income has been rising.
Something has changed?
Many people set a certain amount of money when they would have enough, they say, but when they ritch that amount, her/she observes, paradoxically, that it is still not enough and that they should have … much more.

Why is this happening?
Because the lack of proper financial management leads us to spend the more money that we have at our disposal.
We live in a society where consumption is promoted, even in an exaggerated way. You rarely happen to wonder why you bought a beautiful but unnecessary thing …

If you recognize yourself in the above ranges, then you are likely to recognize yourself in the following, where we underline only 6 of the most common mistakes we have noticed:

1. You are not setting up a budget

If you own a business or have a marketing affair, you probably planned a budget for an investment or a specific activity at a certain time. Setting up your budget helps keep your finances under control. You are the master of the situation. You will not be driven by money, to the intention to spend without measure and the panic of staying without money after.  So when it comes to a new home purchase, a vacation, buying a car, just set the amount you can fit. And the amount will be set based on the market price in line with the financial resources you have. So, the ideal is not to face a big budget hole after such a purchase.

2. You do not count on what you’ve spent before

When you spend on impulse, you ignore the overall picture. You go shopping and finally you realize that you have bought too many things (and implicitly, that you have spent too much). Ideal is to remember your purchasing history.
For example, if you bought a new phone this month, do not buy a new tablet. It’s possible that the two acquisitions together to make you a big hole in the budget. Another mistake is the purchase of similar products in a short time. Or in the early replacement of objects / equipment without necessity. A better management of the money you have can make the difference in the lifestyle and what you can afford.

3. You use your credit card to the maximum

If you own one or more credit cards, do not use them irrationally because … you still have to pay them. As said above, the ideal is to set up a budget for what you need and not to exceed certain limits.

4. You live a luxury life on a low-cost budget

It is good to dream and have high aspirations. But at in the same time, it’s good to be realistic. Especially when it comes to the money you have.
Do not try to live a life of luxury, as long as your budget is falling at to a low-cost …
There are people who spend their wages in two days and then have to live until the next salary. Better try to save, in order to allow you moments of indulgence from time to time. And in the long run keep your realistic sense and do not put you at higher expense than you can take.

5. You do not save

We think we do not have enough money to save, but the more money we gain, the more we spend.
So, you can think that you may never have enough so that you can to put something aside.
When it comes to saving, do not think of colossal amounts. Any cent set aside is an economy. In addition, it is important to learn the habit of saving so that it becomes an integral part of your life and of your family.

6. You ignore your debts

One of the biggest mistakes made when it comes to money is represented by … ignoring debts. If you do not take them into account, that does not mean they will disappear on their own. Worse, they multiply. If you have a debt to the bank, interest rises every day. If you have a debt to someone else, it will not raise interest, but it will increase the frustration and mistrust as far as you are concerned. Do your best not to have any debts. There are psychic pressures that make your plans go worse.

 

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4 mistakes that do not let you have more money

How many times did you happen to keep saying “if I had more money I would live much better!” Even if your income grew in time?
Many of us live this paradox!

What’s the explanation?

Actually, when we know that we have solid financial resources, we feel relaxed and do not put as much restrictions as when we know ourselves strained.
So, although we have more money in our account and in pockets (we gain more), we realize that we are confronted with the same problem.
Beyond that, we have certain habits that make us spend more than we need, and who do not allow us to have more money.

For instance:

1. You spend a lot on brands / label

We like brands. And we love to show them.
In the end, this is also the policy of the various producers: to create a desirable image with which the customer can identify themselves to buy.
Buying branded products is not a mistake.
But it becomes a real problem when we spend a lot of money in this direction.
Think, that finally, the brands do not define you. It gives you a certain status in society, it creates a good image in the eyes of others. But they are not talking about you completely.
When it comes to brands, focus more on the idea of quality.
Beyond the image it gives you, it’s better that the money you spend will bring you a high-end user experience.

2. You’re dying to have the latest gadgets

Somehow related to the idea of brands, we tend to spend a lot on the latest gadgets.
As the latest phone model appears, everyone breaks their savings to buy it.
Why are we doing this?
Again, because we like a lot the label. Before making such a purchase, ask yourself the question: “What other product can offer me the same quality (or similar) at a lower price?”. In this way you can get rid of a major investment that you will feel when you need it most. Do not throw all your savings on such a purchase.
Try to prioritize the things you need. Or that you want.

3. Pride does not let you take your second job

If you read biographies of rich people, you will find that many of them had all sorts of small jobs at the beginning of their career. And such people manage to raise wealth precisely because they have a mercantil way of seeing life.
They know how to use their time to earn money. And they often earned money with at least a second job.
Thus, wealthy people have grown up with care to have at least two sources of income. If one was lost, they were not found in financially distress.
So why not take a second job? It can be a project to work from home. Or it can be part time. Or a weekend job.
Opportunities exist in different places, it is important to identify and capitalize them.

4. You buy things you do not need

You have certainly moved from one place to another at least once in your life time. It has not happened to you to ask yourself, “Why do I have so many things?”
That’s because we all tend to spend on things we do not really need. And we collect piles of unnecessary things that in one way or another make us life harder, and we alter our wallet, too.
Before you buy a thing, try to pass a purchase intent through the following filters:

Do I really need this?
Do not I already have an object that can help me for what I need?
Can I borrow this from someone? (For example, a drill / reading book)
Can not wait until the product is on sale?

Such measures may seem minor to you, but buying only what you need and when you really need it will help you save.
In addition, you will see that you will not fill your house with all sorts of unnecessary things.
Because then you will not know how to get rid of them in an effective way (to give them someone else / to send them for recycling).

On what did you spend the most of your money and what solutions did you apply to get rid of waste?

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10 secrets to be successful and make money

No matter what your occupation is, you probably also want to earn more money.
Whether you are an employee, you are dealing with an online store or any other business where you sell your products and interact with customers, it is important to truly understand the path to success.

Here are some “secrets” you need to keep in mind to be successful and make money:

1. The most important thing: You must be able to offer a quality product or service that as many people as possible want to buy.

2. Put others first! You have to satisfy the needs of others, to help them fulfill their own dreams, and in this process YOUR dreams will also be fulfilled.

3. You must own or control at least one product. To make a lot of money, you have to come into the market with something only you can offer. You must have exclusive control of (at least) one product or service. This must be something people can not find anywhere else. It’s good to be something that many people want.

4. Money brings money. You need to be prepared to spend money (on ads, promotions, etc.) to earn money. If you do not invest money in your business, if you do not “plant the seeds,” you will not really be able to get a rich “harvest.”

5. Focus on advantages! Your customers do not care how extraordinary your company is or what wonderful person you are, they just want to know how your product can help them.
How it will meet their expectations, how they will benefit from it and how it will improve their lives, make them happier or richer, etc. They will buy what you sell only if they feel they will do better by buying from you.

6. Give something for free. Of course you will not make money by offering your services or products for free, but the word “FREE” is still ranked No. 1 in the top of the best words to use in commercials.
If you can provide a free sample, free information or a free catalog, people will come to you for the things you offer for free and if you do the right thing they will be impressed and will want to do business with you.

7. Treat them properly! You have to give your clients the feeling that they can trust you, feel confident that you are right and that you will offer them quality products or services. In addition, they need to know that they can get their money back if they are not happy.

8. You will need help. You must use the services of dealers, distributors and agents. It is impossible to reach everyone through your own efforts.
Your dealers will have bigger sales than you could ever have alone. Your dealers will reach people you can not reach. Who are the most suitable people to recruit as dealers? Your own satisfied customers!

9. Reinvest 30%. You must always keep some of the profit to reinvest it back into your own business. Use this money to buy multiple ads, print multiple catalogs or flyers, send multiple notifications (written or online).
This reinvestments of money in your own business will make them grow and “multiply”. If you do not do that, you will never get to really earn a lot of money.

10. Always keep your eyes and ears open. Find someone who already wins how much money you want and … do exactly what he does!

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10 tips for start-up investors on the capital market

If we want to invest in the capital market, it is very important to have patience and not to act on emotional impulses.
We need to control our emotions and not let ourselves be influenced by the subjective aspects when trading on the stock market.
Greed and fear are the biggest enemies of investors. If you’ve decided to sell a title at a 25% profit, respect that threshold because otherwise it’s possible to lower your profit as a result of further corrections. And the mutual is true, if you have set a loss of 15%, do it, otherwise it is possible to record a larger loss.

10 tips for start-up investors on the capital market:

1. Do not invest in the stock market the money you need right away. Do not plan what to do with the money you will earn from your stock investments, because the stock market is unpredictable, and no matter how much experience you have or how many growth signals you may notice, the market may contradict you and fall.
It is not advisable to invest in the money programmed for important events such as schooling, medical interventions or other projects, because you may have less pleasant surprises.
It is recommended to invest in the amount of money that you may be deprived of for a period of time. It is said to “forget” about the money invested in the stock exchange. That does not mean you do not watch the market because it will do all the work for you, but not include that money in the next financial plans.
Also, do not invest in reserve money set aside for unpredictable situations, because it may not be to your advantage to sell whenever an emergency occurs!

2. Do not invest the borrowed money on the stock exchange. Borrowed money is interest-bearing and must be repaid within a certain amount of time. If the stock market does not confirm your theories, you will have to take money from other sources to cover any losses and to repay the borrowed amounts.That way, you may unbalance your budget over a long period of time and it will be quite difficult to recover financially. Reimbursement of borrowed money, which you have not benefited from due to decreases, creates a lot of stress and you will remain with a negative image about the capital market.

3. Investments on the stock exchange start with small amounts. It is much more comfortable to start trading small amounts in psychological terms because potential losses can still be small. All trading principles and rules are the same regardless of the amount you invest, whether you are a start-up investor or have a low-value portfolio. It is much easier to gain experience with an account with less zeros because you are more relaxed and you can learn from your own mistakes.

4. Start with a demo account in which to create a virtual portfolio. This will help you better understand market mechanisms and build your own information and analysis system. When you start to gain knowledge and figure out how the stock market works and are happy with the returns you get from the virtual portfolio you can start trading on a real account. You can still keep your demo account to test new strategies and make changes to your portfolio, which you are not sure you want to do in the real market. You will gain confidence in yourself and the capital market will no longer seem an unacceptable field. It costs you nothing to make a demo account, but you can gain a lot of experience.

5. Do not invest in complex financial instruments at first. Another important tip is to approach the market from simple to complex. From the basic investments that you know and know how it works and how you can gain, diversify your portfolio with more and more complex financial instruments as you gain experience.

6. Do not wait for the best price. When you have decided to sell or buy, do it at the market price. The capital market is dynamic and constantly moving, and no matter what plans you have, the market will try to contradict you. If you are a long-term investor, small price differences should not be the reason why you can delay a transaction. The more you expect the titles you are targeting to reach a certain price, the more you risk losing your earnings, or even worse, you can record higher losses.

7. Set up an investment strategy and respect it. Once you have identified the type of investor you are and your attitude towards risk, you can begin to make a strategy for future investments. The most important thing about the strategy you set is to respect it and not to change it frequently. If you oscillate between two or more strategies, you risk not to get the expected results. Discipline is one of the most important qualities of an investor, be it beginner or advanced.

8. Do not invest all the amount available in a single financial instrument. The likelihood that all the financial instruments you invest in will decrease at the same time is rather small. By allocating financial resources to different destinations, you can cover the potential loss of some of your investment through the gains made by others. No matter how tempting an investment is, do not bet on a single card!
Diversification can make a difference between a winning investor and one who still expects his investment to become profitable.

9. Invest in the long run, so downtimes will have time to recover and on long-term you can make profit.

10. Invest in blue-chips. Blue-chip shares are the most liquid stocks with high capitalization and consistent financial results over the years. These shares have increased their value over time, due to the confidence shown by investors, confirming each year without disappointing their shareholders. These shares are usualy part of a number of stock indices, which once again demonstrate their quality of capital market stars.

Last but not least, when investing in the capital market, you must always be informed and not invest based on rumors. Any information needs to be verified from multiple sources and as far as possible these sources must be reliable.

Do not forget that in order to be an investor you need to spend time on this activity and become actively involved in decision-making.

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